Why Quebec’s Ideal Can Reshored Supply Chain Back to Canada Amid U.S. Tariffs

With U.S. tariffs continuing to impact Canada’s steel and aluminum industries, Quebec-based food can manufacturer Ideal Can has announced a major expansion, reshoring part of its U.S. supply chain back to Canada.

The company, headquartered in Saint-Apollinaire, Quebec, will open a new plant in Chatham, Ontario, in January 2025, investing $100 million to boost production. Six new production lines will increase its workforce from 35 to 100 employees, with an expected annual output of 1.2 billion cans by 2028, surpassing the 800 million currently produced in Quebec.

In addition, Ideal Can will launch a Hamilton plant in April 2025 to cut and varnish steel sheets for its production facilities, further strengthening its all-Canadian supply chain.

CEO Erick Vachon said the move was motivated by independence from U.S. production and rising costs triggered by tariffs introduced during Donald Trump’s presidency. “Why not use Canadian steel with Canadian food, and a Canadian can maker?” he asked.

Ideal Can’s reshoring strategy has already benefited clients such as Sprague Foods, which previously had to rely on U.S. suppliers. After tariffs, some American suppliers increased prices by up to 76%, making Canadian sourcing more competitive.

While some experts argue reshoring makes sense in the current trade climate, others caution it may not always be economically viable. Professor Jean-Charles Cachon noted that the type of steel required and high plant costs could make reshoring challenging for certain manufacturers.

Still, Ideal Can has positioned itself as the only fully Canadian food can producer, tapping into the growing Buy Canadian movement and reshaping the country’s food packaging supply chain.